Description of the Benefits of Properly Aligning IT Strategy With Business Strategy

by Leyla Norman, Demand Media

When the information technology department and company managers talk about where the business is going, the result can be a more harmonious relationship between the two and a more streamlined business plan. Translating the needs and desires of company officers and lower-level employees as well as of customers into actual IT practice requires a significant amount of effective communication. The end result, however, is a more competitive business.

Add-On

Businesses should not view IT as an add-on component to their overall business plans, according to technology management consultant Colin Beveridge. He holds that IT can help shape business strategy at its core. Businesses can take advantage of IT capabilities to mold their plans for their futures. This leads to a less chaotic and disconnected business plan that integrates IT from the very beginning.

Competitive Edge

Companies that incorporate new technological advances into their production, marketing and other business processes stand a better chance of outdoing their competitors. When business and IT strategy head in the same direction, companies choose the best IT components to use for the business and for its customers. This results in happier customers and employees, which can drive production and customer consumption of products even higher.

Synergy

When IT managers know their roles within the organization and how their work fits into the overall business model and plan, it results in a clearer picture of IT's part in the business. On the day-to-day level, when an employee is able to communicate clearly with customers and other co-workers via the company's information technology developed in line with the company's business goals, he enjoys more streamlined communication and work processes.

Communications

When an IT department and company officers talk about their plans and visions for the business as well as the IT department, the results include both sides knowing how the company works. When the corporate officers map out the needs and goals of the company and the subcultures and business work practices, both officers and IT employees know the make-up of the business on a deeper level. They will have a better understanding of the company's resources. The aligned plan also enables the company to learn how to measure its progress on the way to its goals, make changes more seamlessly when necessary and make better decisions about the business and information technology.

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